Stocks decline around the world

123jump.com Staff
14 Apr, 2005
New York City

Stocks declined around the world beginning in Japan and Australia dragging all the major Asian markets. Investors in Japan were reluctant to buy stock due the economic slow down concerns and earnings worries for the local companies. Recent tensions in some of the Chinese cities did not help either. Australian stocks were sold off on the mining and metal stock concerns. Decline in metal and iron ore prices in began in Australia and continued in Europe, NY and in South America.

Japan -0.64%, London – 0.31%, France – 0.14%, Germany – 0.08%

Stocks declined around the world beginning in Japan and Australia
dragging all the major Asian markets. Investors in Japan were
reluctant to buy stock due the economic slow down concerns and
earnings worries for the local companies. Recent tensions in some of
the Chinese cities did not help either. Australian stocks were sold
off on the mining and metal stock concerns. Decline in metal and iron
ore prices in began in Australia and continued in Europe, NY and in
South America. Investors in Brazil were also unnerved by the strong
rumors of anti-trust investigation of the largest iron ore mining
company CVRD.

Earnings drumbeat continued to roll. Apple computer delivered the best
results it could, but investors only looked for the bad news in the
earnings report. Apple declared Q2 earnings of 34 cents vs. 6 cents a
year ago and beat the estimates of 24 cents. This was not enough for
investors. Investors did not like the company's flat guidance on 2005
revenue. The stock sold off 9%.

AMD released 1Q earnings of 4 cents vs. 12 cents a year ago and also
filed $600 million IPO of its flash memory unit Spansion. In the tech
sell off, AMD was closed 4.7% lower.

Following stocks had steep declines.

Cognizant – 8.52%
Infosys – 7%
CVRD – 5.44%
Phelps Dodge – 5.3%
Wynn resorts – 4.4%
Lenar – 3.86%

S&P – down 1%
Nasdaq – down 1.4%
Dow – down 1.2%


In Other News

Nestle faces vocal opposition to add Chairman Title to the CEO
In NY close June gold delivery closes at $425.60, loosing $5.40
Dollar bulls believe that U.S. short-term rates have risen enough to
support dollar gains
Mexico stocks decline on the back of sell-off in Copper mining stock


Earnings Headlines

Southwest Air profit jumps three folds
PepsiCo reported 1Q earnings of 53 cents
Kerr-McGee board approves $4 billion stock purchase plan to avoid
proxy battle with Carl Ichan
United Health report 1Q earnings of $1.13 vs. 88 cents a year ago
Dow Jones report 1Q earnings of 10 cents on U.S. WSJ revenue decline of 8%
Infosys report year-end earnings of $1.52 vs. $1.01 a year ago